Aviation

AirAsia may soon start flying out of Mumbai

DELHI

AirAsia India will soon be starting flights to Mumbai, a city it had initially not considered due to cost considerations. Tony Fernandes today tweeted about impending operations from Mumbai. This will almost certainly give other airlines some anxious moments since AirAsia’s low fares would push them to compete with low fares of their own for flights from India’s business capital. Fernandes made no mention of any plans to start flights to Delhi though, says a report in Firstpost.

India’s airlines have been on a discount spree this year as they combat low aircraft loads with unbelievable ticket prices, never mind their bottom lines. Ever since AirAsia debuted in June, legacy airlines as well as LCCs have been matching AirAsia’s rock-bottom fares. They are unlikely to give up when the budget airline starts flights from Mumbai. In the process, airline balance sheets continue to bleed.

AirAsia operates in the Bangalore to Kochi, Chennai, Chandigarh, Jaipur and Goa sectors as of now. It is a three-way venture between Malaysia-based AirAsia Bhd, Tata Sons and Delhi-based investment firm Telestra Tradeplace.

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